Series 50: State And Local Government Series (SLGS)

State and Local Government Series (SLGS)

SLGS (called “slugs”) are nonmarketable certificates, notes, and bonds that the U.S. Treasury offers to state and local governments as a means to invest the proceeds from their own issued securities. The Treasury established the State and Local Government Series in 1972 because these governments are prohibited from investing tax-exempt bond proceeds in “higher yielding instruments.” SLGS are offered for sale only to issuers of state and local tax-exempt debt to help them comply with their yield restrictions.

SLGS come in two forms. The time deposit series issues securities as:

•Certificate